True also.

Anyway, I almost finish renovating my unit. I met and talk to an expat in a lift that bought a penthouse a few floor above me. He bought the unit under My 2nd Home policy of the government. Seems like I can renovate or sell my unit to expat in my area. Waiting for my unit to double the price soon. Don't think 2012 crash will happen to my project coz its an expat area with Japanese and gwai loo. Crossing my fingers. 

same discussion in singapore 3-4 yrs ago when ppl expect deferred home payment scheme (end in oct 2007) will affect the properties (glut after completion)  but prop price continue to up up up until gomen today no choice to impose tax to curb escalating prop price. same thing will happen to msia??

the SnP somehow protect the seller.  mean seller dun have to pay LAD if they delay the process (no such clause in SnP).
but buyer has to pay LAD if they failed to pay within 120days. (stated clearly in SnP)
buyer can only issue lawyer letter to cancel if confirmed seller not keen /interest to sell (eg reply within 14 days etc) and get refund.
i m not sure if the buyer can get any compensation.

seems the seller can "enjoy" the 10% DP but delay the whole process and still keep collecting the rental?? 

delay tactic - refuse to pay outstanding maintenance fee so no consent letter.

i see
seems like buyer is always at the losing side... 

yes, that is why i remind LYN memebr to look for good lawyer.
seller only pay LAD when they failed to VP the house to buyer after 100% payment hv been made.
so it is difficult to claim LAD from seller if they delay the proccessing, base on wat reason to claim LAD , delay in getting developer consent? How to justify the delay? they can claim the JMB charge them too much and refuse to pay and must nego. nego take time blah blah,,,your lawyer also pusing kepala...

---

Added on January 12, 2012, 11:13 amin standard Snp, buyer can only claim LAD from seller after u paid 100%, if not, eg 10% oni,  u cant claim.

Not interesting at all.
I read enough doom and gloom since the 4Q of 2011 until now, but stock market keep on rising, corporate make even more profit.
Intel just announced decent profit with profit margin >60%, Microsoft beat forecast, McDonald share keep on become higher and higher, and near all time high and continue reporting higher and higher sales each month.

Same with local company and finance stocks keep on reporting good financial result.

Oil price, commodities price all stay at elevated level, oil price has firm footing >USD1000, so does copper price, CPO.

1997 was not about RE bubble, I suffered and came through during that time, I knew it was not RE bubble that causing the crisis.

---

Added on January 20, 2012, 4:25 pm1997 Asian crisis is not as same as 2008 subprime or RE bubble.

If the next batch of policy makers do not make it happen ( ie unable curb price hike), vote them out the next next time.

the most scary price drop is like still owe RM500K to bank and valuation of the condo drop to RM400K, negative equity.

i suppose all other big business also same.. they got ways to do magic on the numbers so that they pay lower tax..

small biz also do the same la.
everyone like to pay lower tax (of coz legally la).

not sure whether this will spur another round of price surge from regional investors?

http://www.marketwatch.com/story/asia-real...=MW_latest_news

Asia real-estate bull turns bearish
IP Global chief says this crisis not like last one

"Can a person making 3k a month afford a 300k loan?". A very good question to ponder over before taking the plunge to own your first home.

As predicted previously, prices have started to decline.

The Malaysian House Price Index

if & if only lah :-
Q4 2011  --> Down
Q1 2012  --> Down
Q2 2012  --> Down
Q3 2012  --> Down
Q4 2012  --> More ppl will declare b....upcy

Can someone keep an eye on this and check back again and again to see if it is real or just a CEO talking cock ?

easy solution: work parttime during weekend or teaching tuition for the first year before getting salary increament. if u think is too much, then wait for 2nd year then only buy house lor. but the 1 year waiting will cause the property price to increase more. chinese school always teach "pain first, then sweet later".

but if dun want work for parttime, then need save a bit la of course! seriously each person has their own defination for the expenses that u listed out, especially entertainment and meal. ppl like me has dinner at home n only spend 200 for breakfirst n dinner for a month. those who pay dinner themself then add another 100 lor, simple as that. travel expenses give another 200. insurans dun buy first until get increament next year. saving put a pause before getting salary increament. simple as 1 2 3. actually is plus minus...

entertainment? if u know u had already bought a house and dun have money left, would u go clubbing? fresh grad pl focus on yr job for yr first job at least for 1 year until u get increament then only go la!

I've seen some friends who had bought properties much earlier than me refinance their existing properties, take a small loan to buy another house and still have balance left over in their account to cover 5 years worth of monthly repayment for their props. So they're just sitting back and relaxing.

Property prices drop? Ain't gonna affect them much. They'll just sit on their properties and get some incremental income from rent even if it may be insufficient to cover repayment. But honestly, they don't care... it'll just help stretch the 5 years of repayment they already have covered.

But how many people out there do you think are like this? Very few and far between. Changes to the interest rates, etc... may not affect these fellas but it will definitely pummel those who've over leveraged their investment positions and those who budgeted ngam-ngam for each month without leaving aside some room to move and adjust to changes.

Which i would think at this point in time would maybe consist of about 20% of purchasers (if that iproperty report can be believed and accurate). Potentially 1/5 of buyers have over leveraged their position. Which doesn't seem much but could cause some ripples in the market if they go bust.

Bubble burst, i don't think so.
Ppl burst, definitely more likely and would look to most like a bubble.

you hit the nail on the head.

rewind 2 years, all gorengers were doing this. it was, "if the bank is still lending you, you haven't bought enough"!
many applied multiple credit cards in a rush to swipe for dwnpayment.
many applied loans on multiple props with diff banks at same time to "cheat" ccris checks.
that's why the domestic/housing/personal loans ballooned so quickly.

now, i'm pretty sure the master gorengers are no longer doing this but busy selling as quick as they can (while talking things up still. )
so, those still practicing this are either optimistic late comers or diehard upupups.
if there are 3 options for up, down and flat, 2/3 will be wrong, isn't it?
up, down or flat, fresh buyers take on a higher risk.

---

Added on March 1, 2012, 6:45 pm
like me.

But this does not answer the key driver for property price to drop.
From what I know, there are many ppl holding many properties unit in Klang Valley.

I've heard a working guy own 30 units, and another guy own 20 units.
Once, a person told me she known a guy own 1000+ units.

The person can persuade the bank to give him the loan by declaring the rental collected every month as his income.
I heard there do have people get 7 figures monthly income just from the rental collected every month.

This is very risky. If economic crisis happened and a lot houses/shops/offices cannot be rented out, the owner will need to fork out his own money to pay for the installment, else the owner will be bankrupt..

My previous house owner got more than 8 houses just in SS2, and a lot of shops and other houses in other location..

omyfish got it right
Btw, you think a normal working person can earn mega salary after 2-4 years graduated?

---

Added on March 7, 2012, 6:22 pm

People still need to live under a roof.
Assuming loan repayment = RM 1200
Good time, he put rental at RM 1500
Bad time, he put rental at RM 1000

Seems the risk is very low...

It's recently that the government tighten the loan. But government does not tighten the refinancing.
A guy own 20 properties, and do a refinancing to take out RM x amount to buy his 21st property.

refinance to cash out = revalue to current market price = instalment going up
from a property big +ve cashflow to 2 properties -ve cashflow
a bad move at current situation.


As long as he pay up his tax and declare his properties, what is LHDN going to do?

LHDN really happy to have you guys
I do hope you understand how yr rental tax arrive?
rental income - allowable expenses = profit - tax 26% of the profit
the gap(amount) loanable are getting smaller & smaller after each properties you buy as each rental profit count 1/3 as loanable.
unless you tell me he can price the rental amount 26%(tax) + 66%(for loan approval) above normal
maybe when you reach 20 properties, you can advice me. Me really dunno how on earth ppls can loan that many properties using rental income only

Yes, loan repayment is not fixed.
LOL... since when our economy follow the economic rules nowadays?

Bottom line, bubble is not going to pop in these few years time